A database which was set up with the aid of preventing fraudulent insurance claims is now being used by insurance companies when providing quotes and in many cases has led to large increases in the premiums quoted for a wide range of insurance including car, home and travel.
The Claims and Underwriting Exchange (CUE) records hundreds of thousands of calls made by policyholders each year with the information available to all insurers meaning that they are able, when providing a quote, to take such information into account - even if a call is simply an enquiry and does not lead to a claim.
This has led some observers to claim that customers are being doubly penalised - firstly for providing information (as they are required to do under the terms of the existing policy) and then again when seeking a renewal of an existing policy or a quotation.
Quite how this can be avoided is a difficult question but for the moment all policyholders should consider whether a call, which is only an enquiry, really needs to be made.
Fosters Personal Injury Department